House Hunting in ... Grenada

On the southern coast of Grenada and down a narrow peninsula dotted with spacious homes sits Villa Calivigny, a contemporary five-bedroom home built in 2011 on around half an acre, with traditional Caribbean features. Its name comes from the harbor the property overlooks, said Richard Mangnall, the original owner and now the seller. Because of the home’s placement on the peninsula and the layout of its bedrooms and living areas, “you can see the sea from both sides,” Mr. Mangnall said.

The house, built of concrete and painted a cream color, has a clean-lined, uncomplicated exterior featuring a large central gable with a smaller one on either side. From the driveway, a portico leads to double doors that open onto a lofty entrance. Down a few steps is the central living space, a great room. The 17-foot vaulted ceilings have exposed pitch pine beams, painted white. Many of the furnishings and decorative accents are also white. (The home’s furnishings are not included in the purchase price but are negotiable, Mr. Mangnall said.) This luminous palette, combined with a large seafront terrace accessible from the great room, lend the central living quarters “a very lofty, airy feel,” Mr. Mangnall said from his home in central England; the Grenada house is a second home.

To the left of the great room are an open kitchen with a central island, views of the water and the garden, and handmade cabinets imported from the United States. A dining area holds a table for eight. A study, which can also serve as a bedroom, is tucked away opposite the kitchen. Just past the front door and before the great room, a small hallway leads to three bedrooms, each with an ensuite bath. There is another bath on this level, and there are one and a half baths downstairs.

“We designed the house so that the ocean breeze blows in on one side of the bedrooms and out the opposite side,” so air-conditioning is seldom needed, Mr. Mangnall said. (The 5,050-square-foot home does have air-conditioning in the bedrooms and in the media room downstairs and ceiling fans throughout.) The property is on a slope, which is typical in that area. A staircase off the front hallway descends to a two-car garage, the media room, a laundry room and storage space. The bottom floor also has a one-bedroom apartment for staff, with a separate entrance.

For Mr. Mangnall, the home’s heart has been the covered terrace, which faces west — making it perfect for dinner or cocktails against a setting sun. From the terrace, a staircase goes down to a pool and teak lounge chairs. Below the pool deck, a wooden walkway passes over indigenous mangroves and ends at the dock. Grenada’s beaches are all public, so this direct, private water access is precious, Mr. Mangnall said.

There’s a market nearby, and many beaches and restaurants are within a short drive. Twenty minutes away are the capital of St. George’s and the airport. The home’s upscale residential neighborhood, Westerhall Point, has a year-round population, not just vacationers, said Paula La Touche-Keller, the owner-broker of Century 21 Grenada Grenadines, which has the listing.

MARKET OVERVIEW

As the country’s economy continues to improve following the global recession, Grenada’s high-end properties remain relatively affordable in the region, said Walter Zephirin, managing director of Seventh Heaven Properties, a firm based in London that specializes in Caribbean luxury real estate.

Prices range from around $500 to $1,500 per square foot, he added. The most desirable areas with real estate investors are coastal zones in the southwest, Mr. Zephirin said.

Mrs. La Touche-Keller gave a lower span, starting at $350 per square foot and reaching to around $1,000. Sales prices on those properties range from $1.5 million to $4 million. It’s a buyer’s market, she said, with offers 10 percent to 30 percent below asking price being accepted. The vacation rental market is strong, and the island has services to help remote homeowners with maintenance and rental management, she said.

Over all, the economy has begun to see growth, and there has been a recent increase in foreign investment in the tourism infrastructure, said Colin Dowe, an associate dean at St. George’s University.

One challenge for potential home shoppers: The inventory of homes that would appeal to discerning international buyers is limited, Mrs. La Touche-Keller said. After the country was devastated by two hurricanes about a decade ago and then by the recession, construction picked up. These newer homes like Villa Calivigny cater to that clientele, and they feature modern amenities and polished aesthetics, though with local charm, she said.

WHO BUYS IN GRENADA

The high-end residential market is fueled almost exclusively by foreigners buying second homes. The majority of them come from Britain, and interest is developing in the United States and Canada, Mrs. La Touche-Keller said. Grenada has good air service, especially from Britain and the United States, she said.

BUYING BASICS

Foreign property buyers are required to pay the government for an alien landholding license, which costs 10 percent of the property’s value, said Shireen Wilkinson, a lawyer in Grenada.

The annual residential property tax rate is 0.2 percent of the land value and 0.3 percent of the building value.

Buyers must also pay a 15 percent value-added tax and a stamp duty of 1 percent of the purchase price, in order to register the property with the government. Purchases are handled by a local attorney, paid for by the buyer, and legal fees are up to 2 percent of the purchase price.

Grenada recently revamped its citizenship by investment program, which is another avenue for property ownership there.

The property taxes last year were approximately $870. Insurance for the year, including coverage for catastrophes, hurricanes and earthquakes, was approximately $6,900. A homeowner’s association fee was $515 last year.